Mintel: U.S. Chocolate Sales to Hit $25 Billion by 2019, But Lags Europe in Product Innovation

Chocolate confectionery sales grew 24 percent over a five-year period from 2009 to 2014 to reach $21 billion in the United States, the world’s largest chocolate market. However, the pace of growth slowed in 2014, following a pattern that has evolved over the past few measurement periods, up only 3 percent over 2013, according to Mintel research.

The global chocolate confectionery market experienced some high points in 2014, especially in Asia. Growth was strong in South Korea, experiencing an increase of 19 percent; 18 percent in India; 16 percent in China; and 12 percent in Vietnam. 

While chocolate confectionery remains popular in the United States, with 85 percent of adults buying chocolate, an intensifying spotlight on health, rising costs and competing chocolate-flavored offerings across food and drink strain its hold. Mintel predicts steady growth through 2019, with the U.S. chocolate market reaching $25 billion.

“The challenges facing the global market in 2014 have been related in part to supply, as the price of cocoa increased 9 percent in the first 10 months of the year, driven up by a number of factors, including increased demand, climate change and crop disease,” said Marcia Mogelonsky, director of insight for Mintel Food and Drink. “Looking toward 2015 and beyond, Asia will lead the way in market growth, while established markets such as North America and Europe will grow at slower rates. Consumers in these markets tend to prefer ‘favorite’ products and are not willing to experiment with innovative or novel – and typically more expensive – products.”

The global chocolate market has benefited from innovation in the last year, with new product launches growing 18 percent between 2013 and 2014. According to Mintel Global New Product Database, Europe accounted for 51 percent of all launches, followed by Asia Pacific with 21 percent; North America with 12 percent; Latin America with 9 percent; and Middle East/Africa with 6 percent.

Chocolate confectionery innovation within the U.S. has been focused on seasonal products. Some 42 percent of new product launches were classified as seasonal – largely comprised of new takes on familiar products, such as a change in shape or packaging. A look at flavor activity among chocolate confectionery launches found that plain/unflavored varieties are seeing steep declines, while products featuring nuts and nut flavors are on the rise.

“The global chocolate market has seen considerable innovation in flavor and texture, including flavors such as beer and yogurt capturing consumer attention. In addition to enhancing the flavor of chocolate confectionery with added ingredients, there has also been newfound focus on chocolate itself, with both white and dark chocolate gaining in popularity,” Mogelonsky said. “New product development continues to be imaginative, with more exploration of flavors and textures outside the sweet flavor tradition. However, efforts to innovate will continue to run up against a consumer base that tends to be more conservative in product choice.”